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One of the key advantages of personal loans is the flexibility they offer.
Managing monthly repayments of loan is often a concern for borrowers. (Representative image)
As the festive season approaches, the excitement of celebrations leads many to consider enhancing their homes, purchasing gifts, and treating themselves. In this context, personal loans emerge as a viable option for many consumers eager to manage these festive expenditures while maintaining their financial stability. Insights from an industry expert highlight how these financial tools can help individuals navigate seasonal spending without compromising their monthly budget.
Sidharth V, Chief Risk Officer at KreditBee, shares that personal loans offer a practical solution for consumers looking to manage these festive expenses without derailing their monthly budget.
“With the festive season approaching, it’s the perfect time to buy home decor, appliances, or gifts for loved ones,” says Sidharth V. “A personal loan can help you manage these expenses without straining your regular budget.”
Flexibility in Spending
One of the key advantages of personal loans, according to Sidharth V, is the flexibility they offer. “Whether you’re planning home improvements, buying new electronics, or even funding a family vacation, personal loans provide the freedom to handle a variety of expenses with a single line of credit,” he explains. This flexibility makes them ideal for consumers aiming to make the most of the festive season without feeling financially restricted.
Fast and Convenient Access to Funds
The convenience factor is another highlight of personal loans during the festive season. With digital lenders like KreditBee, the process has become more streamlined. “Online platforms offer a seamless application process with minimal documentation and quick fund disbursement, which is especially beneficial during the festive period when consumers may need quick access to funds for limited-time offers or urgent purchases,” Sidharth V emphasises.
Affordable Repayment Options
Managing monthly repayments is often a concern for borrowers, but personal loans offer flexibility in this regard as well. “Many personal loans come with flexible repayment tenures, allowing borrowers to select EMI options that suit their income levels,” says Sidharth V. This ensures that customers can enjoy festive shopping without immediate financial stress.
No Collateral Required
A significant benefit of personal loans is that they are unsecured, meaning no collateral is required. “This is particularly advantageous for individuals who need funds urgently but don’t have assets to pledge,” explains Sidharth V. This feature adds an extra layer of convenience, making personal loans accessible to a wider audience.
Access to Larger Sums
Sidharth V also highlights that personal loans typically offer larger sums compared to other short-term borrowing options. “Whether it’s financing a vehicle, buying expensive gadgets, or remodelling your home, personal loans provide access to larger amounts, making them a preferred choice for significant festive expenses,” he notes.
A Word of Caution
Personal loans stand out as a versatile, quick, and affordable option for managing the surge in expenses while maintaining financial balance—but only if used wisely.
It’s important to assess your financial situation and borrowing capacity carefully before taking a loan. Ensure that you can comfortably manage the EMIs within your monthly budget. Overextending yourself during the festive season can lead to long-term financial strain. It’s essential to borrow responsibly and keep in mind that personal loans, though flexible and convenient, still need to be repaid on time to avoid accumulating debt.
Disclaimer: The views and investment tips by experts in this News18.com report are their own and not those of the website or its management. Readers are advised to check with certified experts before making any investment decisions.
